Whether it’s the four-star Kimpton, the four-star Margaritaville or possibly even the five-star Four Seasons brand, new brands launching in the Cayman Islands entering our marketplace are all very good news for Cayman’s real estate industry. In addition, broadening our brand offering when it comes to new resorts is very important for the islands as a whole, for a number of reasons.
Millions of loyal real estate customer
Brand supporters will follow their favourite resort to wherever it is located. This means people will be drawn to the Cayman Islands who might not have ever thought of vacationing here had it not been for their favourite brand locating in these beautiful islands. Brands such as those mentioned above have millions of loyal customers. For example, since IHG announced last year that they would buy the Kimpton brand, Kimpton rewards members have become part of the enormous IHG Rewards Club programme, the world’s largest hotel rewards programme, with members able to earn points when they stay at any one of their 5,000 hotels worldwide. This means that a whole new segment of the vacation industry has just been made aware of the Cayman Islands. That, in turn, means a whole new group of visitors to Cayman who will vacation here and hopefully enjoy it so much they will want to buy a home here.
Once these new visitors arrive and enjoy their stay they may also realise that they can rent a condo on the beaches of the Cayman Islands with more space for the same cost as a stay at a premium hotel, thereby creating a secondary market for condo owners able to rent to the market.
Access to global marketing
Additionally, big-name brands such as Margaritaville have global companies with extensive marketing resources at their fingertips. This is great news for Cayman because it means far more resources can be put into marketing the resort and thereby Cayman as a whole, giving the Department of Tourism much needed support in getting the “Cayman” message out.
Historically, every time a new brand has been added into our market the Cayman Islands real estate industry has been particularly buoyant for the following three years or so. The variety of brands coming to Cayman is a very good thing because it means a variety of potential real estate buyers in Cayman increases. And while a visitor to the four-star Margaritaville resort might not necessarily have as much cash to spend as a visitor to a five star Four Seasons resort, each new person who chooses the Cayman Islands as their home away from home makes a positive impact to the islands’ economy.
Positive impact for all
I am not thinking only in terms of real estate sales and stamp duty to Government, although they are positive economy boosters, but also in terms of how a new resident and their family gives back to the local economy. Every new resident ensures a boost to the local retail sector via greater contributions to Cayman’s supermarkets, watersports and other shops, commerce in general via greater input into restaurants and the purchase of big-ticket items such as cars and boats. This adds significantly to the economy as a whole. Greater revenue for the country equals better infrastructure and an increase in the quality of general services, which is good for everyone.
I would love to hear from you if there are any points of interest as they relate to Cayman’s real estate industry that you would like me to discuss in future articles, or if there are any questions you would like me to answer. Email: James.Bovell@bovell.ky